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Nexteer Automotive to grow North American market share, hire engineers in Saginaw

In September, Chinese-owned Nexteer Automotive Corp. launched a $295 million initial public offering in Hong Kong.

Now, the Saginaw-based electric-power steering supplier is eager to capitalize on its bustling backlog and new capital.

While Nexteer will use the proceeds globally, it plans to grow its North American market share, Joe Perkins, senior vice president and CFO for the supplier, said at this year's North American International Auto Show.

Perkins said the strong growth of the pickup market helped boost its backlog to $8 billion. Currently, electric-power steering makes up a third of its revenue — which was $2.2 billion in 2012 — but will make up two-thirds of its backlog, Perkins said.

The new growth is leading to an increase in hiring, as well, including 70 open engineering positions in Saginaw. Nexteer employs about 4,000 in Saginaw at its plants and headquarters.

Perkins said there are also plans to grow its presence in Southeast Michigan at its Troy research center.

The growth comes at a critical time for automotive work in Saginaw.

Livonia-based TRW Automotive Inc. said in December it was closing its Saginaw brake plant, which could affect as many as 600 employees. The closing comes after TRW terminated its contract with General Motors Co. due to a lack of securing future work for the plant.

Nexteer's operations were owned by GM until 2010, when it was sold to Pacific Century Motors — a conglomerate funded by the Beijing municipal government. Aviation Industry Corp. of China, the nation's largest aerospace business, now owns 51 percent of Nexteer.